Starbucks: External and Internal Analysis

MSC management;
strategy

INTRODUCTION
Management is an activity of overseeing, administrating, controlling and organising the
business activities and operation with the help of effective plans and policies or strategies.
Administration of strategies is important and ongoing, planning, monitoring, analysis and
assessment of all that is required for a venture to accomplish its aims and goals. Changes in the
business environment need organisation to appropriately evaluate their strategies for growth and
development (Ansoff and et. al., 2018). By implementing effective strategic tools and
techniques, the administration of a corporation analyse the influence of business environmental
factors over the business in different form. This assignment is based on Starbucks which is an
American multinational chain of coffeehouses and roastry reserves. The enterprise was
incorporated in 1971 and is headquartered in Washington, US. This venture operate its business
globally approx 80 countries all over the world. There are different coffee beverages products
like fresh brewed coffee, hot and iced espresso beverages, teas, coffee and tea brewing
equipments mugs an accessories packed goods, books and gifts are offered by it. This written
document will discuss about company and its competitors, external environment analysis and
internal environmental analysis of the company. Further, will explain about recommendations to
develop Starbucks performance and stakeholder report.
PART 1
Overview of Starbucks and its competitors
Starbucks was established in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. This
firm operate its business globally 30,000 location in over 77 nations with the help of its number
of stores. The firm operate its business with the help of its diverse commodities like Coffee
beverage, smoothes, tea, baked goods and sandwiches. There are 291,000 people are employing
by this firm and they make their contribution in running the business of corporation cross wise
the globe. The vision of the company is to be a worldwide global brand and getting attention of
several companies who would like to share partnership. Starbucks, the leading retail firm, roaster
and brand of special coffee in the globe has been hostile as of stumbling financial system, its
own fast development and maximised rivalry from cheaper rivals.
The mission of this venture is to encourage and raise the human being- on person, one cup
and one neighbourhood at a time (Ginter, Duncan and Swayne, 2018). The function of this
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business is to propose quality and finest coffee product to its target audiences to fulfil their need
and retain them till long term. To accomplish its mission and vision the administration of the
organisation frame some principle such as embrace diverseness as an important factor, boiling
and distributing of coffee at its greatest and offer a great working place to employees where they
can performed well and can treated with respect and dignity. There are number of competitors of
respective company who create competition by offering substitute products in market. Caffe
Nero, Costa Coffee, Mc Cafe, Dunkin Donuts, KFC, Cafe Ritszza, Cafe Coffee Day, Coffee
Republic and Dilmah Tea etc. are some major competitors of Starbuck which generate rivalry in
coffee business industry by offering different similar products as respective firm. By using
effective business strategies like establishing efficient person attach and offering improved
quality goods to consumers it deal with the issues of competition in effective manner.
External Analysis
It is an activity of determining the influence of extrinsic factors of business atmosphere
that influence the business of a company in favourable and in favourable manner (Moutinho and
Vargas-Sanchez, 2018). External analysis states examining the industry environment of the firm,
considering components like competitive structure, competitive position, dynamics and history.
On a macro scale, external analysis considers macroeconomic, global, political, social,
demographic and technological analysis. The main purpose of this kind of analysis is to
determine the growth options and risks in a sector or any segment that will drive profitability,
growth and volatility. For this, the management of Starbucks can use PESTEL, 5 Forces analysis
and industry life cycle model. The description of them in context f Starbuck is as below:
PESTEL analysis- It is a method and process which is used by as business plan of action by the
management o Starbuck to determine the macro environment factors influence over the business
activities and operations.
Political- This factor contain some elements like political stability and instability,
corruption, government interference and many more. The major political feature that affects
Starbuck is about source the raw material and this has assembled a lot of the attraction for
politicians in the west and from those nations who sourcing raw material. Cause of it, the firm
wants to stay to communal and environmental customs. Free trade is another factor that
positively affect firm by offering free operations in different nations of the world.
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